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Exchange Rate Quiz

When the value of the British pound changes from $1.50 to $1.25, then

When the exchange rate changes from 0.9 euros to the dollar to 1.0 euros to the dollar, then

If the dollar _____ from 0.8 euros per dollar to 1.2 euros per dollar, the euro _____ from 1.25 dollars to 0.83 dollars per euro.

If the dollar depreciates relative to the Swiss franc,

The theory of purchasing power parity is a theory of how exchange rate are determined in

When the value of the dollar changes from

When the exchange rate changes from 1.0 euros to the dollar to 0.9 euros to the dollar, then

If the dollar appreciates from 0.8 euros per dollar to 1.2 euros per dollar, the euro depreciates from _____ dollars to _____ dollars per euro.

When the exchange rate for the euro changes from $0.80 to $1.00 then, holding everything else constant,

The _____ states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries.